The tiered system usually breaks down into these categories:  Employee only (individual), employee plus spouse (or increasingly plus one, either spouse, partner or child), Employee plus children (without spouse/partner), or Employee plus spouse/partner and children (family).  Each level may require a different level of cost sharing with employee.  In some cases the plans may limit the number of children eligible for coverage.

There is another interesting factor that companies are using to mitigate their healthcare insurance expenses – focusing on the employee’s eligibility for coverage under a spouse’s plan.  Some companies deny coverage to spouses that have insurance through another source.  In some cases the employee may be charged a “surcharge” if they are eligible for coverage from another source. 

Pricing of coverage is very important in the overall picture.  If the company’s policy is inexpensive relative to the employee’s spouse’s plan, then the employer may end up covering more dependants than other companies in the area.  If the pricing is too restrictive, then employees may not get the coverage they need for their families,   The end result may be a  hardship for that employee in the event of a health issue, or the employee may search for other employment due to this dissatisfier.

Now let’s throw another factor into the mix.  In a blog in the New York Times online recently, the blogger posted the idea that American insurance companies may go away altogether.  There are a couple of reasons given:  first , over 60% of working Americans are now covered by a company self-insurance plan.  Second, the new healthcare reform act, focusing on accountable care organizations, may significantly affect the reimbursement process for care.  The outcome may be that providers are reimbursed by patient, with bonuses for quality achievements.  Theoretically the providers will be focused on keeping the patient healthy to keep treatment costs down. Also there’s no need for an insurance “gatekeeper”, as the company or group of individuals will contract directly with the provider group for care. (Sounds a lot like the original HMO plan goals, without the insurer.  We’ll see!). 
So, best of luck to employer and employee alike!

When the employees in a company are unprepared for their retirement years, they may work beyond the time they should retire.  This is a psychological blow for the employee, and has an effect on the org staffing plan as well.  Because the recent financial crisis has taken a bite out of peoples’ savings and retirement accounts, as many as 24% of workers are planning to work until after age 70.  There is also a significant increase in the number that feel they won’t be living comfortably in retirement.

For the company, there is a significant financial impact when employees work beyond their normal retirement age.  First, health care expenses for folks over 65 can be more than double the cost of insuring people age 45 -55.  In the case of work-related accidents, severity and time away from work can increase dramatically in the older employee.  Salaries and compensation tend to be higher in the more mature worker compared to younger employees with a similar skill set.  Some sources say that productivity drops…but there is an issue with the new grads and young employees on the same topic.  There is a problem, however when an employee is there because they have to be because they can’t retire.  There tends to be a drop off in energy and productivity for these folks.

There are things the organization can do to promote a culture of retirement readiness.  The first step is obviously to look at the level of participation in retirement plans by those nearing retirement age.  Then look at how many employees at all stages of their working life are utilizing the retirement benefits of the organization to the fullest advantage. 

As the company reviews the retirement culture in their organization, they need to evaluate the plan design to assure that employees have access to options that fit their needs, and that the company makes it easy for employees to contribute or participate.  Then – communicate.  The information needs to be geared to the various ages or work life stages of the employees.  Younger workers will have very different needs and views of retirement than a 55-year-old.  Provide easy response mechanisms such as “take action” cards that encourage them to respond.  Employees should also be offered financial consulting support from an outside source to provide them information for informed choices regarding their plans. 

If the company makes matching contributions, they should try to structure the matches to encourage savings.  As is to be expected, if the company matches up to 3% of the employee’s deferred salary, that is what they will contribute.  If the plan matches at 50% for the first 3% deferred salary, changing to a 25% match for the first 6% might change the participation rates and encourage more savings without adding costs to the company.

Obviously there needs to be continued evaluation of the entire retirement picture, with specific measures such as participation rates and average salary deferrals to track how well the plan is succeeding.  Success of the plan is greater success for the organization, and a better prepared workforce.

For the new senior executive, the perks are great, the responsibilities critical to the success of your company, and you are making great money.  That’s the good part.  The challenge is to stay there and succeed in the new role!

An article on this topic by Jim Swanson, senior director for the American Bar Association and former CEO for USAF Legal Operations was published in the online news, December 2011, for the Society for Human Resource Management.  In it he outlines some of the differences as one assumes a leadership role.

One of the most significant differences might be obvious, but requires some thought.  The new Big Bosses are a very different group than those in middle management.  These people have a whole world of “bosses” to report to, including their board, shareholders, customers, and even Government.  Their work schedules are generally 24-7, and their time is always stretched.  Therefore a big part of your job is to communicate efficiently.  A quote from a former boss of mine – “Be brief, be bright, be gone.”  -might apply here.

Your attention and time will also be spent primarily on solutions to the overall company goals.  Your focus should be always on the results, without getting tangled in the details and processes of your internal organization.  Failing to deliver is a sure definition of failure in your boss’s eyes.  You also need to steer clear of turf wars or spending time on personal status issues.  These are NOT productive.

Don’t bring problems – bring solutions.  If you simply bump tough problems up to your boss, you are not providing value in the role.  If it is necessary to bring an issue to the Boss, be prepared with solutions and courses of action that are in line with the “big picture” as the Boss sees it.  This means that you have to be constantly aware of the current situation in the company so pay attention.

Executive suite language often requires interpretation.  The Boss doesn’t criticize in public, and speaks much like a diplomat – oblique and highly civil.  It is for you to understand underlying messages. In public settings, compliments are “diplomatic” and you shouldn’t read too much into them.  In one on one communications, compliments with a “but” in the conversation may be an expression of concern so listen carefully to the comments.  Also, any time the Big Boss makes a suggestion or mentions something more than once, take it as “Do it ASAP”. 

Finally, get used to NOT getting a lot of strokes from the CEO.  Also get used to criticism, as it is part of the territory.  There is usually not much time for coddling – the fact that you are still in the executive suite is reward enough.

For the “Big Boss” – help your new execs prepare for the role, and you will have a much more productive and stable group to support your success.  Good luck.

However, in areas of the country where there is job recovery, there seems to be another problem.  There is a significant gap between skills needed for these jobs and skilled workers ready to go to work. 

The SHRM article asked for responses concerning the skills deficits in job applicants for specific organizations.  A response from the Arlington, VA Workforce Investment Board said that in some cases job seekers just don’t know how to promote themselves.  When responding to the question “Why do you want this job” the applicant’s answer may be – “Because I want a job.”  Not a good way to highlight the skills a worker could bring to the company. 

Job seekers need to be aware that the current economic productivity is similar to levels reached prior to the 2007 -2009 recession, but there are millions more people out of work.  The good news is that 58% of companies that laid off workers during the recession are making direct replacement of those jobs. The bad news is that many of those jobs now require completely new skill sets.

The applicant needs to be able to separate him- or herself from the pack by highlighting the talents and skills they bring.  Recently there has been a change in the focus of the HR Recruiters from years of experience to actual skill sets available in the job seeker pool- reflecting the trend of changing skill requirements.

The really interesting issue highlighted by companies responding to the SHRM-posted question said that the most common skill deficiencies in applicants are 1) writing in English 2) math skills 3) reading comprehension and 4) speaking in English.  The cited language deficiencies could be easily addressed by applicants through local training organizations.  Students in secondary or post-secondary educational institutions need to be aware of these needs and be focused on heightening their skills going forward.

Hiring, or hunting for a job are stressful and difficult processes, and even with the right skills, or the right group of applicants the one thing we all need is persistence and a sense of humor.  Good hunting!

You are invited to attend the 2011 New Mexico Employer Summit on Thursday, November 17, 2011 at Hotel Albuquerque from 7:30 a.m. to 12:30 p.m. Panels and discussions during this half-day event will include:
-  “How to Align Business Practices with Unemployment Insurance Policy”
-  “Readily Available Business Resources and Services”
-  “How Employment & Labor Laws Apply to Your Business”
Advanced registration is required and seating is limited. Registration is $25 per person. To register, please call Rosanna at the Albuquerque Hispano Chamber of Commerce, (505) 842-9003, ext. 110 by November 3, 2011. For more information, please call (505) 841-8690 or visit the 2011 New Mexico Employer Summit website at
www.dws.state.nm.us/employersummit.

The other side: 
- Be careful not to discriminate against older workers when looking for interns.  The perception is that these jobs go to young graduates, but there are many older workers wanting new skills.
- Interns sometimes perceive that they are not subject to employer’s policies even if they sign the appropriate documents.  Similarly supervisors may think the same way.  Abuses of internships by both parties can lead to legal claims and end up being more of a hassle than the program is worth.  The key, of course is clear direction and careful management by the supervisor, with the help of the Human Resource group.
- Foreign workers on a visa do take internship jobs, and so the visa requirements need to be carefully managed as well. 

Companies need to set clear goals for their internship programs and make certain they are reaching them.  The primary reason a company has this program is to have access to a pool of possible hires.  If the company can’t identify good candidates in this pool, then it isn’t being managed correctly.  If the company isn’t able to add new employees, the time spent on training may not be worth it, even though it contributes to the business community overall.

Each company has its own special needs, and decisions about internships need to fit these needs.

One of the most difficult tasks, other than actually getting a product to market, or at least funded, is pulling together the individuals (with the skills needed) to move the vision forward.  The team that comes together to work on the project needs to work collaboratively and yet the individual member needs to exert influence in their field of expertise.  These team members also have to be flexible and not afraid of risk.

A major decision for the entrepreneur is whether to add a co-founder.  An article on the blog site www.onstartups.com discusses why you want a co-founder and how to choose one.  The article “Choosing a Minimally Viable Co-founder” by Dharmesh Shaw, first outlines the reason for one.  It can be summed up in the African proverb:  “If you want to go quickly, go alone. If you want to go far, go together.”   Having someone to share the ups and downs, to bounce ideas off of, and to help get things done, is valuable in the startup world.   So, the author writes, while you are on your quest, keep a sharp eye out for the awesome candidate that can help you “go far”. 

The article provides some key guidelines to help you in this search.  They are ideas such as: you have to be able to trust them, they have to be brilliant at building or selling, they commit to the company and not just the current idea, they are likeable, and they do stuff (not just think about it).  Also important as characteristics are whether they crank and grind (as hard as you do) and they are reasonable and rational. 

The purpose of the list, and the caution of the article, is to not waste time looking for “perfect” but recognize someone with great skills that line up with your goals.  One issue that comes up with co-founders is the same issue that comes up when entrepreneurs go looking for funding -  that you have to give up some control.  The end result is the key in both cases, having a successful startup that creates wealth, and that you get your share.

Those employers that appreciate happy productive employees are more likely to say things like “thanks, good job” or let me know if you need help” or even “why don’t you take the rest of the day off – you’ve worked hard to complete this project”.  Their employees are also more productive overall (See my previous blog on paying for performance).

A column in Bloomberg Businessweek, by Liz Ryan (10/4/2011) gives some great examples of what “bad bosses” say and how it negatively affects the company.  One I’ve already alluded to- “If you don’t want this job, I’ll find someone who does”.  These bosses love to remind employees that it’s all about the money, and that “You work for me”.  In actual fact money is not as important in a professional relationship as feeling like the employee makes an important contribution. 

Another (and we’ve all heard it) is “I don’t pay you to think”.  In my experience, those bosses felt threatened by anyone with a good idea, or they were stuck in old ways and didn’t want to make an effort to change.  Any employee with a brain is going to look for a new job asap.

How about “I’ll take it under advisement”?  Much like Mom or Dad saying “We’ll see”, and not a very positive response.  It usually means the boss doesn’t value your input enough to make an effort.

“Bring me solutions – not problems” can be perceived in two ways.  During the “re-engineering” craze in the ‘80s this was a catchphrase for the movement.  It should be empowering to the employees , as those closest to the problem usually can find better solutions.  It has also been misinterpreted as “don’t complain – just deal with it”, not nearly as positive an attitude.  It is also possible, that in the complicated business environment we live in now, the solution is a much more complicated one, and needs a manager’s involvement. 

“Who gave you permission” is such an antiquated attitude, but does still prevail.  Any organization has rules and guidelines for the workplace and the business, but when employees want to stick their collective necks out and try new ideas, there should be support and advice available from management – rather than roadblocks.  Companies that can respond quickly to new opportunities or crises don’t use that phrase.

Others – “sounds like a personal problem to me”, “drop everything and do this NOW”, and “everyone here feels the same way” can be belittling and create a negative work environment to those having to hear these comments.  So, whether you are just leading a meeting, or leading a department, think before opening your mouth “how would this sound if a boss said it to me”?  Thinking before speaking is always a good idea!

Worker Location – Knowing where the foreign worker is physically working is important.  Many managers are not aware that foreign national workers in the U.S. may be geographically restricted to a particular location based on the attestations made by the company in the initial visa petition.  The US Citizenship and Immigration Services Department is responsible for confirming that workers are indeed at the location cited in the visa.  Recently the Department has stepped up the number of onsite visits to H-1 and L-1 employers to ensure that visa holders are indeed working where they are supposed to be.  They also check to verify that the foreign worker is in a position that requires the skills and education that they possess. 
For example, an H-1B temporary worker visa is issued for a foreign national who possesses at the minimum a bachelor’s degree or equivalent and who has taken a position in the US that requires the bachelor’s degree.  The L visas are either L-1A, an intra-company transfer visa for a manager or executive, or an L-1B visa for a person with specialized knowledge.  Again, the USCIS will verify that the person with the visa is actually meeting the L visa specifications. 
One duty, therefore, of the contact person managing this program is that they work closely with the supervisors writing the request to assure that there are no discrepancies between the attestations on the petition and the actual position being filled.

Records Maintenance – There are specific requirements for maintaining files for foreign workers, as there are for any other employee.  In particular, there is a time to purge employee documents as it relates to H-1B employees.  This is in part to ensure that the company is not held liable for possible past transgressions. 
Companies hiring an H-1B nonimmigrant must file a Labor Condition Application (LCA) with the Department of Labor, attesting as to the nature of the position and wages to be paid.  This report then becomes part of the Public Access File which has to be maintained throughout the foreign national’s employment and kept for one year following the expiration of the application or separation with the employee.  If the employee is terminated or resigns prior to expiration of the LCA, the employer has to notify DOL and the USCIS of that fact.  Failure to notify can result in the company being responsible for back pay. 

Inadvertent Exports- Currently companies filing a Form I-129, specifically used for several categories of nonimmigrant workers have to certify the company’s  compliance with US Department of Commerce and US Department of State “deemed export” regulations. 
“Deemed Export” rules relate to the release of a controlled technology to a foreign national.  Employers must certify whether or not the technology that foreign workers have access to has sensitive military, trade or national security applications, and if so to follow the appropriate licensing process.  The requirement may relate to the produce itself or to the “destination” country, as the foreign worker is seen as a representative of that home country.  If the worker is from an embargoed nation or those accused of harboring terrorists, restrictions as to technology access are at the highest level.
So..carefully read the controlled technologies list.  Keep careful records if you are the immigration contact person, and periodically get updates from supervisors concerning the foreign national worker’s status.  See why you might want to pass this opportunity on to someone else? 
Finally, your employment attorney should be involved in and apprised of any documentation and reporting, just to make sure.  Good luck!